Note:

This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

October 12, 2023

Financial Results for FY2023 Q1
Company name: Sansan, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4443
URL:
https://www.corp-sansan.com/
Representative:
Chikahiro Terada, Representative Director & CEO
Inquiries:
Muneyuki Hashimoto, Director, Executive Officer, CFO
TEL:+81-3-6758-0033
Scheduled date to file quarterly securities report:
October 12, 2023
Scheduled date to commence dividend payment:–
Preparation of supplementary materials on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors andanalysts)(Millions of yen with fractional amounts rounded down, unless otherwise noted)

1. Consolidated financial results for the first three months of the fiscal year ending May 31, 2024
(from June 1, 2023 to August 31, 2023)(1) Consolidated operating results (cumulative)
Net sales

Adjusted
operating profit(Note 1)

Operating profit

Ordinary profit

Profit attributableto owners ofparentMillions ofyenMillions ofyenMillions ofyen

Three months ended

Millions ofyen%Millions ofyenAugust 31, 2023
August 31, 2022

7,504
5,714

31.3
24.3

143
(227)

Note: Comprehensive income(Percentages indicate year-on-year changes.)

%

–
–

120
(265)

Three months ended August 31, 2023:
Three months ended August 31, 2022:

%

–
–

110
(173)

%

–
–

25
(325)

%

–
–

¥49 million [–%]¥(282) million [–%]

Basic earnings per Diluted earnings
share
per share (Note 2)
Three months ended
August 31, 2023
August 31, 2022

Yen

Yen

0.21
(2.61)

0.20–

Notes: 1. Adjusted operating profit = operating profit + share-based payment expenses + expenses that arise from businesscombinations (amortization of goodwill and amortization of intangible assets)
2. Diluted earnings per share for the first quarter of the fiscal year ending May 31, 2023 are not shown in the abovetable, as although there are dilutive securities, net loss per share was reported for the first quarter of the fiscal year
ending May 31, 2023.

(2) Consolidated financial position
Total assets
As ofAugust 31, 2023
May 31, 2023
Reference:

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen%

31,62531,20013,427
13,19040.5
40.6

EquityAs of August 31, 2023:
As of May 31, 2023:¥12,821 million¥12,660 million

2. Cash dividends
Annual dividends
First quarter-end

Second quarter-end Third quarter-end

Yen

Fiscal year ended
May 31, 2023
Fiscal year ending
May 31, 2024

Yen

–

Yen

0.00

–

Fiscal year-end

Total

Yen

Yen

0.00

0.00

0.00

0.00

–

Fiscal year ending
May 31, 2024
0.00–
(Forecast)
Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated earnings forecasts for the fiscal year ending May 31, 2024 (from June 1, 2023 to
May 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
May 31, 2024

Adjusted operating profit

Millions of yen%

Millions of yen%

32,653
to33,674

28.0
to
32.0

1,240
to
1,852

31.7
to
96.6

Notes: 1. Revisions to the earnings forecasts most recently announced: None
2. For multi-step profit or loss under operating profit or loss, the Company refrains from disclosing a concrete
forecast because it is difficult to make a reasonable estimate of share-based payment expenses, which may varysignificantly depending on the level of the Company’s stock price, and some non-operating income or expenses.

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of specific accounting for preparing the quarterly consolidated financial statements: None
(3) Changes in accounting policies, changes in accounting estimates, and restatementa. Changes in accounting policies due to revisions to accounting standards and other regulations:Noneb. Changes in accounting policies due to other reasons: Nonec. Changes in accounting estimates: None
d. Restatement: None
(4) Number of issued shares (Common shares)
a. Total number of issued shares at the end of the period (including treasury shares)
As of August 31, 2023

125,530,452 shares

As of May 31, 2023

125,410,584 sharesb. Number of treasury shares at the end of the period
As of August 31, 2023

871 shares

As of May 31, 2023

871 sharesc. Average number of outstanding shares during the period
For the three months ended August 31, 2023

125,440,913 shares

For the three months ended August 31, 2022

124,975,016 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public
accountants or an audit corporation.
* Proper use of earnings forecasts, and other special matters
Forward-looking statements, including the earnings forecasts stated in these materials, are based on
information currently available to the Company and certain assumptions deemed reasonable. Results
may differ materially from the forecasts due to various factors.

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1

Attached Material
Index
1. Qualitative information on quarterly financial results .............................................................................. 2(1) Explanation of operating results ............................................................................................................ 2(2) Explanation of financial position ........................................................................................................... 6(3) Explanation of consolidated earnings forecasts and other forward-looking statements ........................ 6
2. Quarterly consolidated financial statements and significant notes thereto ............................................... 7(1) Quarterly consolidated balance sheet .................................................................................................... 7(2) Quarterly consolidated statements of income and comprehensive income ........................................... 9
Quarterly consolidated statement of income ......................................................................................... 9
Quarterly consolidated statement of comprehensive income .............................................................. 10(3) Notes to the quarterly consolidated financial statements..................................................................... 11(Notes on premise of going concern)................................................................................................... 11(Notes on significant changes in the amount of shareholders’ equity) ................................................ 11(Application of specific accounting for preparing the quarterly consolidated financial statements)... 11(Segment information, etc.) ................................................................................................................. 12(Significant events after reporting period) ........................................................................................... 13- 1 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1

1. Qualitative information on quarterly financial results(1) Explanation of operating results
Under the mission of “Turning encounters into innovation” and the vision of “Become business
infrastructure,” the Company group (the “Group”) is providing cloud-based solutions that promote
digital transformation (DX) and reshape how people work, leading to encounters with people andcompanies that become business opportunities by using approaches that combine systems that use
technology and manpower to digitize analog information with cloud software.
Specifically, the Group is developing solutions to promote DX for corporate sales activities, invoicing
work, contract work, etc. Moreover, as a result of reforming awareness regarding DX, changes toworking styles due to the COVID-19 pandemic, and greater attention being given to SaaS (Software asa Service) products, the DX market is forecast to reach ¥5,195.7 billion by FY2030 (an increase of¥3,813.6 billion since FY2020) (Note 1), while the SaaS market in Japan is forecast to reach ¥1,668.1
billion by FY2026 (an increase of ¥579.0 billion since FY2022) (Note 2). A sales DX solution Sansan,
provided by the Company, holds 81.6% share (Note 3) of the B2B business card management service
market, and this market has seen approximately 14-fold expansion from 2013 to 2021 in conjunction
with the growth in the Company’s services. In addition, Bill One, a cloud-based invoice management
solution provided by the Company, captured the number one market share of the online invoicereceiving solution in terms of net sales (Note 4), with this market seeing a 226.0% increase year on
year in FY2021.
Consolidated financial results for the first three months of the fiscal year ending May 31, 2024
(hereinafter, the “period under review”) is as follows.
(Millions of yen)

Net sales
Gross profit
Adjusted operating profit
Ordinary profit
Profit attributable to owners ofparentThree months ended
August 31, 2022

Three months ended
August 31, 2023

YoY change

5,714
4,930
(227)
(173)

7,504
6,510
143
110

+31.3%+32.0%
–
–

(325)

25

–

In the period under review, backed by the positive order situation for Sansan and Bill One, the Group
strengthened the sales structure for each service and enhanced service functions in order to improve
medium-term net sales growth and adjusted operating profit margin. In the Eight business, alongsideswitching its development concept to that of a specialized app for virtual card exchange and businesscard management, the Group also worked to increase future profitability.
Consequently, results were strong in the period under review with net sales increasing 31.3% year on
year, gross profit increasing 32.0% year on year, and a gross profit margin of 86.8%, up 0.5 points year
on year. Adjusted operating profit was in the black, at ¥143 million. This was attributed to year-on-year
improvements such as growth in net sales and reduced advertising expenses. Furthermore, mainly
owing to adjusted operating profit entering the black, ordinary profit and profit attributable to ownersof parent likewise moved into the black.
Notes: 1. Based on Market Edition and Vendor Strategy Edition of 2022 Outlook of the Digital
Transformation Market by Fuji Chimera Research Institute
2. Based on 2022 New Software Business Markets by Fuji Chimera Research Institute
3. Based on Latest Trends in Business Card Management Services in Sales Support DX 2023
(December 2022, survey by Seed Planning, in Japanese)
4. Deloitte Tohmatsu MIC Research Institute, “The Present and Future of the Market of Online
Invoice Receiving Solution Expected to Grow at a Staggering Rate” (MIC IT Report, July
2022)
- 2 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1Results by segment are as follows.
(i) Sansan/Bill One BusinessThis business segment includes services such as sales DX solution Sansan, and cloud-based invoice
management solution Bill One.
Results for Sansan/Bill One Business in the period under review are as follows.
(Millions of yen)Three months ended
August 31, 2022

Three months ended
August 31, 2023

YoY change

5,147
4,701
4,451
250
401
44
1,221

6,816
5,439
5,114
324
1,160
216
1,899

+32.4%+15.7%+14.9%+29.8%+189.2%+385.9%+55.5%

8,644
subscriptions

9,067
subscriptions+4.9%¥173 thousand¥189 thousand

+9.2%

0.59%

0.46%

(0.13) pts.

140
930
subscriptions

404
1,952
subscriptions+187.4%¥151 thousand¥207 thousand+37.1%

0.45%

0.56%

+0.11 pts.

Net sales (Note 5)
SansanSansan recurring sales
Sansan other sales
Bill One
OthersAdjusted operating profit
SansanNumber of subscriptions
Monthly recurring sales per
subscription
Last 12 months average ofmonthly churn rate (Note 6)
Bill OneMRR (Note 7)
Number of paid subscriptions
Monthly recurring sales per
paid subscription
Last 12 months average ofmonthly churn rate (Note 6)+109.9%Notes: 5. The sum of sales to external customers and intersegment sales or transfers
6. Ratio of decrease in monthly fees associated with subscription cancellations to totalmonthly fees for existing subscriptions for each service
7. Monthly Recurring Revenue
a. Sansan
To further expand the number of Sansan subscriptions and the monthly recurring sales per
subscription, the Group strengthened the sales structure while enhancing functions for Sansan.
Specifically, functions were added whereby e-mails with customers are automatically stored in
Sansan, and contact information, such as the transmission and receipt of e-mails, is visualizedin chronological order. By combining this contact information with over 1 million items ofcompany information, users of Sansan can build custom databases that also include information
for companies with which they have no current contacts. In addition, with the aim of
maximizing sales for Sansan, the Group has switched from a common sales structure used by
Sansan and other services to a dedicated sales structure tailored to Sansan.
Consequently, progress has been made in acquiring new subscriptions, mainly from medium
and large enterprises, and the number of subscriptions and the monthly recurring sales per- 3 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1

subscription for Sansan were up 4.9% year on year and 9.2% year on year, respectively.
Furthermore, the last 12 months average of monthly churn rate was 0.46%, a decrease of 0.13
points year on year, maintaining a low churn rate of less than 1%.
As a result, net sales in Sansan increased 15.7% year on year, of which recurring sales (fixedrevenue) was up 14.9% year on year and other sales was up 29.8% year on year.
b. Bill One
With the objective of achieving continued high growth for Bill One, in addition to boosting thesales structure through active personnel hiring, the Group strove to further enhance functions
through such means as launching the corporate credit card Bill One Business Card.
Consequently, in August 2023, MRR was up 187.4% year on year and ARR (Note 8) was¥4,859 million. In addition, steady progress in acquiring new subscriptions from medium andlarge enterprises resulted in the increase of number of paid subscriptions, up 109.9% year on
year, and the increase of monthly recurring sales per paid subscription, up 37.1% year on year.
Furthermore, the last 12 months average of monthly churn rate was 0.56%, an increase of 0.11
points year on year, maintaining a low churn rate of less than 1%.
As a result, net sales in Bill One increased 189.2% year on year. By working on personnel
hiring, strengthening marketing activities and enhancing service functions, the Group aims foran ARR of at least ¥7.0 billion in May 2024.
Note: 8. Annual Recurring Revenuec. Others
The Group focused on the launch of services including Contract One, a contract DX solution,utilizing the strengths, knowledge, know-how, etc. cultivated through existing services. In
addition, CREATIVE SURVEY INC. became a consolidated subsidiary in March 2023 and its
contributions to consolidated earnings have been recorded from the fourth quarter of the fiscal
year ended May 31, 2023.
As a result, net sales of others was up 385.9% year on year.
As a result of these efforts, net sales in Sansan/Bill One Business increased 32.4% year on year.
Adjusted operating profit increased 55.5% due to an improvement in profit margin as a result of thestrong growth in net sales.

- 4 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1(ii) Eight BusinessThis business segment includes Eight, a business card app, as well as the event transcription service
logmi series.
Results for Eight Business in the period under review are as follows.
(Millions of yen)Three months ended
August 31, 2022

Three months ended
August 31, 2023

YoY change

533
72
460
(135)

599
81
518
(91)

+12.4%+12.1%+12.4%–

3.15 million
people3,008
subscriptions

3.37 million
people4,023
subscriptions+0.21 million
peopleNet sales (Note 9)
B2C services
B2B services
Adjusted operating profit
Eight
Number of Eight users (Note10)
Number of subscriptions for
Eight Team+33.7%

Notes: 9. The sum of sales to external customers and intersegment sales or transfers
10. Number of confirmed users who registered their business card to their profile after
downloading the app
a. B2C services
Owing to the normalization of business due to the ending of the COVID-19 pandemic, and also
the enhancement of functions such as the virtual card exchange function, the number of Eightusers totaled 3.37 million, a steady increase of 0.21 million year on year, and net sales fromB2C services increased 12.1% year on year.
b. B2B services
The Group worked on strengthening monetization of the various B2B services. As a result, net
sales from B2B services increased 12.4% year on year. In addition, the number of subscriptions
for Eight Team increased 33.7% year on year.
As a result of these efforts, net sales in Eight Business increased 12.4% year on year, and adjusted
operating loss was curtailed by ¥44 million year on year.
In the Eight business, the Group is working to solve the problems associated with physical businesscards, namely “running out of business cards when you need them” and “misplacing the businesscards you receive,” by offering a smart way to manage and utilize business card information. With
this purpose in mind, in September 2023 the Group switched the concept of Eight from a contact
and career management app to a business card app, and installed the new one-touch business cardexchange function as an addition to the existing virtual card exchange and business cardmanagement functions.

- 5 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1(2) Explanation of financial position

Total assets
Total liabilities
Total net assets
Total liabilities and net assets

As of May 31, 2023

As of August 31, 2023

31,20018,00913,19031,20031,62518,19813,427
31,625(Millions of yen)
Change fromprevious fiscal
year-end
425
188
236
425

AssetsTotal assets at the end of the period under review were ¥31,625 million, up ¥425 million from the endof the previous fiscal year. This was primarily due to an increase of ¥398 million in prepaid expenses,
an increase of ¥296 million in goodwill, an increase of ¥899 million in leasehold deposits, a decrease of¥506 million in cash and deposits, and a decrease of ¥515 million in accounts receivable - trade.
Liabilities
Total liabilities at the end of the period under review were ¥18,198 million, up ¥188 million from theend of the previous fiscal year. This was primarily due to an increase of ¥1,102 million in advances
received from receiving a lump-sum payment of contract term fees from customers, a decrease of ¥151
million in accounts payable - trade, a decrease of ¥384 million in accounts payable - other, a decreaseof ¥134 million in income taxes payable, a decrease of ¥221 million in provision for bonuses, and adecrease of ¥135 million in long-term borrowings.
Net assets
Net assets at the end of the period under review were ¥13,427 million, up ¥236 million from the end of
the previous fiscal year. This was primarily due to an increase of ¥51 million in share capital as a resultof exercise of share acquisition rights, an increase of ¥51 million in capital surplus, and an increase of¥82 million in non-controlling interests.
(3) Explanation of consolidated earnings forecasts and other forward-looking statements
The forecasts of consolidated financial results for the fiscal year ending May 31, 2024 have notchanged from the forecast announced on July 13, 2023.

- 6 -Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1

2. Quarterly consolidated financial statements and significant notes thereto(1) Quarterly consolidated balance sheet(Millions of yen)
As of May 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Intangible assets
Software
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold deposits
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets- 7 -As of August 31, 2023

21,114
1,180
604
341
(32)
23,207

20,607
664
1,002
309
(33)
22,550

770

748

827
706
0
1,533

797
1,002
0
1,800

3,705
885
595
502
5,689
7,993
31,200

3,723
1,784
513
503
6,525
9,075
31,625

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1(Millions of yen)
As of May 31, 2023
Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provision for retirement benefits for directors (andother officers)
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 8 -As of August 31, 2023

338
558
1,929
206
410
10,729601
207
14,982

186
550
1,544
71
363
11,831379
268
15,196

2,838
–

2,703
50

–

53

188
3,027
18,009194
3,002
18,198

6,582
4,178
1,695
(2)
12,454

6,633
4,229
1,721
(2)
12,582

156
49
206
457
72
13,19031,200

178
60
238
450
155
13,427
31,625

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Millions of yen)Three months ended
August 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest and dividend income
Subsidy income
Gain on sale of investment securities
Surrender value of insurance policies
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses
Share of loss of entities accounted for using equity
methodLoss on investments in investment partnerships
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on reversal of share acquisition rights
Total extraordinary income
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 9 -Three months ended
August 31, 2023

5,714
784
4,930
5,196
(265)

7,504
994
6,510
6,389
120

0
3
291
–
1
297

1
1
–
12
3
18

3
12
1

3
7
0

179

–

1
7
204
(173)

9
7
28
110

0
0
(172)
4
144
149
(322)
3
(325)

0
0
111
16
78
95
16
(9)
25

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1

Quarterly consolidated statement of comprehensive income(Millions of yen)Three months ended
August 31, 2022
Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Three months ended
August 31, 2023

(322)

16

25
13
39
(282)

21
11
32
49

(286)

58

3

(9)

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1(3) Notes to the quarterly consolidated financial statements(Notes on premise of going concern)
Not applicable.
(Notes on significant changes in the amount of shareholders’ equity)
Not applicable.
(Application of specific accounting for preparing the quarterly consolidated financial statements)
Not applicable.

- 11 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1(Segment information, etc.)[Segment information]
Ⅰ

First three months of the fiscal year ended May 31, 2023 (from June 1, 2022 to August 31, 2022)
1. Information on the amount of sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
Others(Note) 1

Sansan/Bill One
Business

Eight
Business

5,146

533

5,680

34

5,714

0

0

0

21

21

5,147

533

5,680

55

5,736

1,221

(135)

1,086

(9)

1,077

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)(Note) 2

Total

Total

Notes: 1. The “Others” category is a business segment that is not included in the reportable segments, and includes
subsidiaries’ businesses.
2. Segment profit (loss) is shown as adjusted operating profit (loss), which is the sum of operating profit(loss) plus share-based payment expenses and expenses arising from business combinations (amortizationof goodwill and amortization of intangible assets).
(Millions of yen)

Sansan/Bill One
Business

Eight
Business

Adjustments(Note)

OthersAmount in
the quarterly
consolidated
financialstatement

Segment profit (loss)
Share-based payment
expenses
Amortization of
goodwill andamortization of
intangible assets
Operating profit (loss)

1,221

(135)

(9)

(1,304)

(227)

12

5

–

12

31

–

5

1

–

6

1,208

(145)

(10)

(1,317)(265)

Note: Adjustments are the amounts of corporate expenses not attributable to any reportable segment andmostly consist of general and administrative expenses.

2. Matters regarding changes in reportable segments(Change in the method of measurement of profit (loss) of reportable segments)
Previously, segment profit (loss) was shown as operating profit (loss). However, from the firstquarter of the current fiscal year, this was changed so that segment profit (loss) is shown as
adjusted operating profit (loss), which is the sum of operating profit (loss) plus share-based
payment expenses and expenses arising from business combinations (amortization of goodwill
and amortization of intangible assets), because the performance indicator used for management
purposes was changed to an indicator that shows the regular capacity to generate corporate
earnings after deducting expenses related to share-based payments, which may varysignificantly depending on the level of the Company’s stock price, and expenses that arise frombusiness combinations.

- 12 -

Sansan, Inc. (TSE 4443)
Financial Results for FY2023 Q1

Ⅱ First three months of the fiscal year ending May 31, 2024 (from June 1, 2023 to August 31, 2023)
1. Information on the amount of sales and profit (loss) for each reportable segment(Millions of yen)
Reportable segments
Others(Note) 1

Sansan/Bill One
Business

Eight
Business

6,814

599

7,413

90

7,504

1

0

2

27

29

6,816

599

7,416

117

7,534

1,899

(91)

1,808

(26)

1,782

Net sales
Sales to externalcustomers
Intersegment sales ortransfers
Total
Segment profit (loss)(Note) 2

Total

Total

Notes: 1. The “Others” category is a business segment that is not included in the reportable segments, and includes
subsidiaries’ businesses.
2. Segment profit (loss) is shown as adjusted operating profit (loss), which is the sum of operating profit(loss) plus share-based payment expenses and expenses arising from business combinations (amortizationof goodwill and amortization of intangible assets).
(Millions of yen)

Sansan/Eight

Adjustments

OthersAmount in
the quarterlyBill One
Business

Business

1,899

(91)

(26)

(1,638)

143

(0)

(0)

–

(3)

(5)

12

5

9

–

27

1,887

(95)

(36)

(1,635)120(Note)

consolidated
financialstatement

Segment profit (loss)
Share-based payment
expenses
Amortization of
goodwill andamortization of
intangible assets
Operating profit (loss)

Note: Adjustments are the amounts of corporate expenses not attributable to any reportable segment andmostly consist of general and administrative expenses.

2. Information on impairment losses of non-current assets or goodwill, etc. for each reportablesegment(Significant change in goodwill amount)In the “Others” segment, the Company acquired shares of Institute of Language Understanding
Inc. in the first quarter of the current fiscal year and included the company in the scope of
consolidation. In the three months ended August 31, 2023, the resulting increase in goodwill
amounted to ¥316 million.
(Significant events after reporting period)
Not applicable.

- 13 -